The Joy of My Job

By Loyd Hambrick
Chief Operating Officer

A privilege - Today I had the opportunity to do something few people have the privilege to do and the results are the reason I do what I do. For the past several months, I have been working with an individual committed to pursuing a dream of starting a business; today was the first meeting with potential lenders. Many don’t realize the work that must be completed prior to that first meeting and Joe (not his real name) was no different. What is unique is his commitment and his teachable spirit.

The plan - The first drafting of his business plan was destined for the circular file as it required a great deal of work from the reader, in this case a lender, to find any reason to support the plan. I’m sure it wasn’t easy for Joe to hear my comments and suggestions but he was extremely teachable, a trait absolutely necessary for the process of business consulting to work, and he went back to work. Eager to make changes in his approach, he took the instruction I gave and came back with a totally different focus in his plan. There were still several changes that needed to be made and I’m sure Joe wondered what he had gotten himself into, but he never backed down. In addition to seeking help from West Company, Joe sought out industry-specific counsel because though he is experienced in the industry, he recognized he doesn’t know it all. Working many times late into the night, Joe produced a plan worthy of submittal for loan consideration.

The meeting – Having the opportunity to sit alongside someone willing to dream and fight for his dream is truly an honor. Listening to Joe answer the many questions asked by four different lenders, it was evident he had done his research and was confident with his plan but then I knew that already. I was very glad I had been honest with him through our many sessions, had insisted he be confident with his plan, and that his projections were based on reality and not some pie-in-the-sky belief. I remember and shared with the committee how Joe’s realization that these projections translated into his ability to pay his bills and support his family of five drove his desire to "get real". Every question the lenders asked, and there were many, Joe did not hesitate and always had a good sound answer. It was great fun to watch!

The result – It is a great feeling to walk out of a potentially disappointing meeting confident in the performance! After receiving a unanimous decision from the committee to move forward with underwriting, we were both on cloud nine. I encouraged Joe, “We still have a long way to go, but you should celebrate the accomplishment of this goal! You have done a very good job!” Today’s mission was not for his plan to be approved but rather submitted for underwriting and that is exactly what happened!

The joy – I have several times sat in front of lenders and weathered the barrage of questions; having the opportunity to support someone daring to dream is much rarer and a feeling I will never forget. I am grateful for Joe’s teachable spirit and his willingness to allow me to help. Thanks, Joe. Stay tuned for further updates and the Grand Opening!

So many books to choose from...

by Heather Gurewitz
Mendocino Women's Business Center Director

One of West Company's blog reader sent us the following question:

There are so many business books out there, how can an enterprising person tell which ones are worth their time? What are the common denominators of a good business book?

Unfortunately, there is no easy answer to this question. As they say, "You can't judge a book by its cover." However, the following could be used to decide if a business book is right for you:

Avoid: Books that put easy and rich in the same sentence. Anyone promising easy riches or easy steps is probably full of it (and I don't mean riches).

Look for: Books that have specific strategies to help trouble shoot the problem you are trying to solve. Always look at the table of contents and see if it looks like it will address your interests. If they have worksheets all the better. Some even come with compact discs with templates that can help you apply the techniques discussed.

Avoid: Books that are overly technical for your knowledge base.

Look for: books that you will enjoy reading. If you are thinking about buying a book, open to the first page of chapter one, and start reading. If you are lost by the end of the page, it may not be right for you. And hey, if you spend a lot of time on the road, you may want to think about the audio version. Personally, I love audio books, mainly because I can drink a cup of tea, work on a jigsaw puzzle, and still absorb information. I still recommend previewing the book. Some of the best books have the worst audio voice recordings. Make sure it's tolerable.

Avoid: books that offer free money or grant sources for small business. Those are most definitely scams and a waste of money.

Look for: some of the classics like "Seven Habits of Highly Successful People," "Getting to Yes," or "Guerilla Marketing." These books have been sparking innovation in business for years. Or if you are looking for something with specific information, Nolo Press makes a number of (usually thicker and dryer) books about the legal aspects of starting and running a business. If you are looking for a good book on social media and viral marketing, check out "The New Rules of Marketing and PR" by David Meerman Scott or "The Power of Pull" by Hagel, Brown, and Davison.

Avoid: Books with big pictures of the author on the cover. (Note: This is questionable advice, but I always follow this rule. Again, this is my opinion and not that of West Company or the SBA, the WBC or SBDC. And in all honesty I do have a couple of really good business books with big old faces on them).

Finally: Don't spend money on something you don't actually have time to read.

West Company invests a lot of our resources into keeping up with trends, acquiring information, and developing workshops so that instead of spending months getting half way through a business book, you can take a West Company workshop and get the same information in 3 hours.

Of course there are some cases when that very special book is just what you need, get it from a local and independent book store!

Revelations from Fall Cleaning

by Heather Gurewitz
Mendocino Women's Business Center Director

 

Pamela Patterson (2000),
then Biz Dev. Manager.,current CEO

 If you've been to the coast office in the last couple of days you may have noticed that we have done some furniture re-organizing. Through this process I ended up cleaning out a cabinet that I have been avoiding for a long time. Now, I am not much for cleaning, but this turned out to be a lot of fun, as the cabinet was like a journey through the history of West Company. We found photographs of the re-dedication of the Women's Business Center back in 2000 as well as the "Advancing the Status of Women Award" presented to West Company on April 27, 1997 by Soroptomists International.

 


Joy Calonico(2000), then WBC Director
current SBDC consultant

 I was still working on my undergraduate degree in 1997,so thinking about all the people who have worked for West Company over the last 22 years creating an organization that does so much for our community makes me feel proud to be a part of it.

West Company has changed and expanded since the old days when West was actually an acronym. Today, West Company continues to serve male and female micro-entrepreneurs, but, as the Small Business Development Center, West Company provides a higher level of service to existing businesses looking to grow. As an organization we have accumulated a vast body of knowledge over the last 22 years that we are able to share with our clients.

As the Women's Business Center Director and a community development professional I do what I do because I want to make a difference, and it is important to remember that the work I do isn't just about what I do with the clients I see now. West Company has been successfully implementing a grass roots approach to economic development for a long time and I am proud to be a part of it!

Reducing taxes by being prepared!

By Loyd Hambrick
Chief Operating Officer

Do you want to pay less in taxes? Lots of help exists for self-employed individuals to better prepare themselves for tax time. It was noted during a recent webinar I attended on SETI, the Self Employment Tax Initiative, studies conducted by organizations supporting SETI indicated individuals who were prepared for tax time received on average 300% higher refunds from the IRS than those not prepared. Yep, that’s right, 300%. For those that are not aware, SETI was launched in 2005 by the Corporation for Enterprise Development (CFED) and according to their website, “The Corporation for Enterprise Development is a national nonprofit based in Washington, DC dedicated to expanding economic opportunity for low-income families and communities. The purpose of SETI is to demonstrate how local organizations can use the tax code to deliver essential business development and financial services to low-income entrepreneurs.” One of the greatest values this organization noted of SETI was the coaching and training they were able to offer self-employed individuals to better understand one of the most important documents for the self-employed, the Schedule C. Anyone earning a profit of at least $400 per year through self-employment, is required by law to complete and file a Schedule C which is simply a profit and loss statement in an IRS format. Fortunately, Mendocino County residents have a great resource at their disposal for the same type of training and coaching. West Company, the Mendocino Small Business Development Center and Women’s Business Center, offers free consulting as well as workshops that enable small business and microenterprises to keep more of their money, and who doesn’t want to do that? The clearer understanding a business owner has of Schedule C, the more they can use the document to their advantage. For instance, let’s say you are self-employed and you have one or more employees. As a good business owner, you want to reward your employees for a job well-done by buying them lunch let’s say once-a-month. Under Schedule C guidelines, legitimate business meals and entertainment are deductible but only at fifty percent. Knowing this, a business owner can devise a better incentive program that could be classified as an acceptable expense but deductible at one-hundred percent. Though training such as West Company offers is not a substitute for accounting advice from a licensed CPA, it goes a long way in making that advice much more valuable. The more prepared a business owner is when seeking the services of a CPA, the less time required of the CPA and therefore the smaller bill a business owner must pay. If you would like more information on how you can be better prepared for tax season, contact West Company at (707) 467-5931 for inland regions or (707) 964-7571 for coastal region or visit us online at www.westcompany.org.

More on Free Marketing...

By Heather Gurewitz,
WBC Director

Okay, let's be honest. While there are some who are technologically challenged, really, "doing Facebook" isn't rocket science. If you have some fingers and a computer with internet (or a Smart Phone and two thumbs) you can Facebook pretty easily. I would even venture to say, it's easier than email. So, why do people have trouble with Facebook? Now, this is just a theory, but I believe it is because there is a difference between being able to post and being able to post something that generates sales.

Well, the first thing to note is that if you have a business then it is beyond recommended that you have some sort of a web presence for your business. The good news, is that you can do it for free and still have it be professional.

The second thing to note is that "Zero-Budget Marketing" is more than simply social networking. In "Zero-Budget Marketing" we will cover Facebook, blogs, what I call Google's "free zone", Tweeting, and how to actually do all of these things. We will also cover the most important question of all (drum roll please) WHY? Why do these things? How will they benefit my business?

When you invest time or money into marketing it should generate sales (and hopefully profit) for your business. "Zero-Budget Marketing" isn't just about using the free marketing tools of the web, it's about maximizing your profit from those tools.

Zero Budget Marketing is on Tuesday, October 19th from 5:30-8:30 at West Company in Fort Bragg. There are only a few spaces left, so call 964-7571 today if you are interested.

Reduce your stress level!

by Heather Gurewitz
Mendocino Women's Business Center Director

Last Saturday, I found myself sitting at a table promoting West Company at the Health and Wellness Fair at Mendocino Coast District Hospital. At first it felt like an odd fit, though I often tell people that "we help people have healthy businesses." However, the longer I was there, the more I realized how important West Company is for helping people have healthier lives. In 2006 (when the economy was still good) do you know what the leading cause of stress was? FINANCES! (see http://ezinearticles.com/?7-Leading-Causes-of-Stress&id=473303 for more info)


Now, you can spend all of the money you are stressing about on acupuncture, massages, hypnotherapy, aromatherapy, and mediation classes, but what it comes down to, is if you want to reduce your stress level, you have to work on the real problem, improving your finances.

So no, West Company doesn't help relieve stress, but we help solve the problems that cause it! We do this by helping our clients work on their budgeting, improving their efficiency, and increasing their sales.

If you are self-employed or have a small service based business, such as landscaping, contracting, massage therapy, a beauty salon, or another business in which time is your main commodity, West Company is offering a special course, "The Price is Right?" for people who are already in business to take a good look at their current pricing and financial model, and to come up with tools to improve it.

"The Price is Right?" will take place on October 12th from 5:30-8:30 pm at West Company in Fort Bragg. The goal of this workshop is for participants to walk away with some clear actions to increase the profitability of the business. We will be looking at case studies, doing activities, and discussing how to revise the business financial model to increase profitability.

But wait, it doesn't stop there! (I konw, I sound like an infomercial) Once we get the "house" in order, and come up with some clear financial goals, "Zero Budget Marketing" will be offered on October 19th, 5:30-8:30 pm, to help you increase sales without increasing (and possibly decreasing) your marketing budget!

For more information contact our office at 964-7571 or sign up online by clicking here.

Keeping the Balance

By Heather Gurewitz
Mendocino Women's Business Center Director

No matter what we do, or how good we are at what we do, there is always a need for refreshers, updates, learning time. That's what the annual Association for Small Business Development Center's Conference is for West Company staff. For one week each year, our staff travel to the destination in which hundreds of business consultants from across the country share strategies, secrets, and tips for improving our ability to serve our clients.


Over the three days of training, we have to choose from marketing, finance, accounting, management, and leadership courses offered by various centers. My strategy going in is to find the workshops that hit my weak spots. For example, I steer clear of social media marketing workshops, and I bee-line for the accounting. However, after 6 hours of taxes, balance sheets, and cash flows the first day, I realized that I was hitting to heavy in one area and I had to remind myself of what I teach my clients:

You have to think holistically about business, the most key part of business is not finance, marketing, or product, its BALANCE. You may be great a making formulas, adding numbers, and subtracting numbers, but if you forget the marketing piece, you won't have any numbers to mess with. Conversely, if you are a cracker-jack marketer you can have millions of dollars in sales and have zero profits. You can even end up with net losses. So, the big reminder to me of the conference, is that there is never a silver bullet, for me or for my clients. It's an integrated process, and the more you put yourself off balance, the more you leave your business at risk of failure.

As for me, I had to mix it up a bit. So while I definitely got some great new tools to use in financial management, my brain is now chalk full of market data, decision making strategies, and all kinds of facts and figures to help Mendocino Coast businesses and start ups. Over the next few blog posts I will be following up with topics inspired by the ASBDC conference.